In today’s technical analysis, we are focusing on the British Pound to Swiss Franc (GBP/CHF), which is currently at a key technical juncture. The pair is testing a significant horizontal resistance level, marked with yellow around 1.137. This level has been a major obstacle in recent weeks, and the rising pressure suggests that a breakout may be imminent.
Adding to the bullish case is the series of higher lows, supported by a red uptrend line. This structure reflects increasing demand as buyers steadily push prices higher toward the resistance. If the price manages to break and close a day above the yellow area, it will generate a compelling signal to go long. Such a breakout would not only confirm the upward momentum but also potentially set the stage for a larger bullish trend.
Conversely, caution is warranted if another rejection occurs at this resistance. In December, we saw two shooting star formations in this area, each of which triggered a decline. A repeat of such price action, with the formation of a strong bearish reversal candle, would serve as a signal to go short.
Traders should monitor the daily close carefully, as it will provide the definitive clue about the direction of the next move. For now, the market remains on the brink, and the outcome will depend on whether buyers can finally overpower the resistance or if sellers regain control.